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Johannesburg - The rand was steady against the dollar in Thursday trade ahead of a central bankers’ meeting in the United States that might signal further easing in the world’s leading economy, boosting the high-yield appeal of emerging markets.
The local currency and government bonds barely moved on data showing growth in credit demand by the private sector slowed slightly to 8.34% year-on-year in July while money supply quickened to 8.26%.
The rand was at R8.4149/$ by 08:53, just 0.09% off Wednesday’s close at R8.4075.
“Everyone is treading cautiously and not taking large positions ahead of the meeting in Jackson Hole. I don’t see the rand breaking out of these ranges significantly,” a trader at a Johannesburg commercial bank said.
Government bonds were slightly firmer at the open, and yields inversely edged lower.
The yield for the heavily traded three year paper dipped 1.5 basis points to 5.505% and that for the longer-dated 2026 bond eased two basis points to 7.5%.
“Secondary market trade has generally been quiet for the past two weeks, with activity picking up around the government auctions,” RMB analyst Thando Vokwana said in a note.
“We don’t expect this trend to change anytime soon.”
The Treasury will offer R2.1bn in total of its 2023, 2018 and 2048 government bonds next Tuesday.
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